GAME's board of directors has announced it has "concluded discussions with its lending syndicate" and has agreed it will revise "terms for its facilities", which will allow the firm to continue operations.
In order to continue operating, the firm has agreed to do so within the "lower limits of its existing facilities than was previously available."
With the new plans in place, the board, stockholders, and lenders are "confident" GAME will meet financial tests when the next meeting occurs on February 27. It will also need to provide an updated plan covering all aspects of its business including overseas operations, but the plan will need to be approved by lenders before being put into place.
The firm expects to post losses of £18 million for the year, which is lower than analyst speculation.
"We're pleased to reach agreement with our lenders, but should be under no illusions about the challenges in our market or the hard work that is required to deliver our strategic plan," said CEO Ian Shepherd in a statement.
GAME operated 665 stores in the international market - 573 in continental Europe, and 92 in Australia - as well as 610 in the UK and Ireland.